HYDERABAD: With no funds to pay compensation to property owners for acquiring their land for the Metro rail project, the Hyderabad Metro Rail Ltd (HMRL) is seeking a loan of Rs 250 crore from banks. The Telangana government, which suffered revenue loss post-demonetisation, reportedly advised the HMRL to seek a loan from other financial institutions or banks. Sources in the state government confirmed that the HMRL is in talks with Andhra Bank for the loan of Rs 250 crore including interest during construction. “The government will stand guarantee for the loans while HMRL will repay the amount in 10 years with a three year moratorium,” a senior official of municipal administration and urban development department said. The state government earmarked only Rs 200 crore in the current year’s budget (2016-17), while it Rs 500 crore was sought for property acquisitions, shifting of utilities and also for providing other facilities at metro rail stations such as street furniture and pavements. Of the allocated budget, the government has so far released only Rs 100 crore. The metro rail authority has been facing a financial crisis for the past one year due to lack of sufficient funds. HMRL is under pressure to acquire land and hand this over to L&T Metro Rail (Hyderabad) Limited for completion of the project. Municipal Administration minister KT Rama Rao recently announced that metro rail project would be completed by the end of next year. The state government has proposed the opening of the Miyapur-SR Nagar and Nagole-Begumpet stretches by June 2 this year on the Telangana Formation Day. Of a total of 3,000 properties, excluding Old City properties, the HMRL has acquired almost all except 120 to 130 properties. “Of the remaining properties, about 100 need to be taken over on Sultan Bazar stretch. The process is under-way. The HMR promised to pay about Rs 1,00,000 per square yard to those losing land. Unless the stretch is clear, L&T cannot complete JBS to Falaknuma stretch up to Osmania Medical College,” an official source said.

HMRL officials admit that land acquisition has become dearer after the new Land Acquisition Act 2013 came into force. In one example, it has to cough up Rs 1.72 crore for taking over 176 sq yards land belonging to Wakf Board near Musheerabad. HMRL managing director NVS Reddy said the state government would complete the project as early as possible. “Miyapur to SR Nagar, a 12-km stretch, will be ready very soon while Nagole-Begumpet stretch works are progressing well, a rail over bridge at Oliphant Bridge near Secunderabad railway station is the main hurdle. The government will take decision on opening of first metro stretches,” he said.